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Agro-Food Industry as Engine for Growth and Wealth - EMRC

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Building business bridges worldwide<br />

<strong>Agro</strong>-<strong>Food</strong> <strong>Industry</strong><br />

<strong>as</strong> <strong>Engine</strong> <strong>for</strong> <strong>Growth</strong><br />

<strong>and</strong> <strong>Wealth</strong><br />

Results of the AgriBusiness <strong>for</strong>um<br />

held in Rome - pp. 4-9<br />

Interview with Franz Fischler,<br />

<strong>for</strong>mer EU commissioner - p.3<br />

Special insight on Angolan<br />

provinces: Cabinda, Bié<br />

<strong>and</strong> Benguela - pp. 10-15<br />

Published quarterly by


Editorial<br />

Philippe van Maldeghem<br />

Editor-in-Chief<br />

The 21st century’s dilemma:<br />

<strong>Food</strong> Security vs. Energy Needs<br />

Upcoming projects this year:<br />

- DIALOGUES - <strong>EMRC</strong><br />

■ Economic Mission Africa-Israel, Tel-Aviv: 19-23 October 2008<br />

■ Economic Mission to Bié, Angola: October 2008<br />

■ Next issue of Dialogues, with special focus on a few Angolan provinces: Autumn 2008<br />

■ European Development Days, Str<strong>as</strong>bourg, France: 15-17 November 2008<br />

■ Economic Mission to Chad: November 2008<br />

■ Africa Finance <strong>and</strong> Investment Forum 2008 (AFIF), Paris, France: 7-9 December 2008<br />

Building business bridges<br />

worldwide<br />

Published quarterly<br />

by<br />

In theory, food security is a human rights issue, but in practice, it is rather a question of economics. This<br />

dichotomy applies harshly to developing countries, since their leaders are continuously facing a dilemma<br />

between economic growth <strong>and</strong> their people’s welfare. Oil prices have never been so high in the p<strong>as</strong>t<br />

fourty years, thus some governments choose rightly to diversify their energy sources, <strong>and</strong> venture into<br />

the “Biofuels leitmotiv”. But un<strong>for</strong>tunately, some countries refuse to admit it is too soon <strong>for</strong> them to do<br />

so. Encouraging biofuels crops in regions where people suffer from hunger can be dis<strong>as</strong>trous in the long<br />

run, since this incentive will drive farmers to use their l<strong>and</strong> <strong>for</strong> that purpose only, in search <strong>for</strong> higher<br />

returns. One should be careful with this new opportunity, <strong>as</strong> food <strong>and</strong> energy are interlinked: an incre<strong>as</strong>e<br />

in fuel <strong>and</strong> transport costs, devaluation of currencies or market speculation lead inevitably to a rise in<br />

food prices, ultimately borne by the final customers. Supplies will then decre<strong>as</strong>e accordingly, although<br />

the dem<strong>and</strong> still remains…<br />

These critical debates on the world food crisis were addressed l<strong>as</strong>t June at the FAO headquarters in Rome,<br />

which hosted two major events: the first one from FAO’s initiative, a high-level political conference<br />

linking food scarcity <strong>and</strong> climate change, <strong>and</strong> the second one organised by <strong>EMRC</strong>, the renowned<br />

“Agribusiness Forum”, gathering businessmen from four different continents.<br />

In this summer edition, Dialogues will focus on Angola, one of the f<strong>as</strong>test growing economies in Africa.<br />

After a long civil war, the country is finally entering a peaceful period <strong>and</strong> will hold legislative elections in<br />

September. The Provincial Governments have played a key role in the peace process <strong>and</strong> in the economic<br />

development of the country. In this edition we present some of the projects <strong>and</strong> opportunities in the<br />

provinces of Cabinda, Benguela <strong>and</strong> Bié.<br />

The magazine also presents the outcome of the Agribusiness Forum, where we give the floor to<br />

personalities presenting their projects, visions <strong>and</strong> success stories. This is precisely the mission of the<br />

<strong>EMRC</strong> network: to give the opportunity <strong>for</strong> every entrepreneur to show their abilities <strong>and</strong> opportunities,<br />

in order to create direct partnerships. To paraphr<strong>as</strong>e the UN Secretary General, Ban Ki-Moon, during<br />

the political meeting at FAO, people should leave the conference “with a sense of purpose <strong>and</strong> mission,<br />

knowing that we are allied in our determination to make a difference. Hundreds of millions of the world’s<br />

people expect no less”...<br />

Publisher: Idit Miller<br />

Editor-in-Chief:<br />

Philippe van Maldeghem<br />

Main contributors:<br />

Jeanne McCaul,<br />

Pierre Coetzer<br />

Designer: Bird<br />

ADVERTISING INQUIRIES<br />

Communications Officer:<br />

Seán Kerrigan<br />

Tel: +32 (0)2 626 15 17<br />

Fax: +32 (0)2 626 15 16<br />

Email: sk@emrc.be or<br />

dialogues@emrc.be<br />

<strong>EMRC</strong> International<br />

Av. Louise, 283/22<br />

Brussels 1050, Belgium<br />

Tel: +32 (0)2 626 15 15<br />

Fax: +32 (0)2 626 15 16<br />

Email: info@emrc.be<br />

Website: www.emrc.be<br />

The views expressed in this issue of Dialogues are the private views of individuals <strong>and</strong> are not necessarily those of <strong>EMRC</strong> International, its executive committee, or members of its business<br />

network. Reproduction in whole or in part is permitted, providing that any such reproductions, whether in whole or in part, are not sold, unless they are incorporated in other works.<br />

I nterview<br />

Franz Fischler<br />

Former European Commissioner (1995-2004)<br />

successively <strong>for</strong> Agriculture <strong>and</strong> Fisheries<br />

“<strong>EMRC</strong>’s <strong>for</strong>um is precisely a way to stimulate<br />

the entrepreneurial behaviour in Africa.”<br />

■ Dialogues: Given your expertise, what<br />

is your <strong>as</strong>sessment of the subsidies given to<br />

EU farmers, which are perceived by African<br />

farmers <strong>as</strong> preventing them from competing<br />

at a fair price?<br />

Franz Fischler: Firstly, a lot depends on the<br />

type of subsidies <strong>and</strong> the way they are given to<br />

the farmers. The problem is that the European<br />

Union h<strong>as</strong> been used to giving, in the p<strong>as</strong>t, exports<br />

subsidies, which means that the prices<br />

on exports get reduced, in order to become<br />

more competitive. Today it is a huge problem,<br />

<strong>and</strong> these practices must be discontinued. I<br />

personally cannot see this practice go further,<br />

<strong>and</strong> I notified all the WTO members,<br />

together with P<strong>as</strong>cal Lamy, current Director<br />

General of the World Trade Organization<br />

(WTO), saying that Europe is prepared<br />

to ph<strong>as</strong>e out all the subsidies on export. We<br />

expect others to follow our initiative.<br />

Secondly, the direct support given to the<br />

farmers depends on the way it is done by<br />

the EU. Following the EU’s re<strong>for</strong>m, support<br />

is given directly to the farmers, <strong>and</strong> there is<br />

no link anymore to the product or the production<br />

process. There<strong>for</strong>e, this type of support<br />

is not distorted by trade or competition. This<br />

is different from the way the US are supporting<br />

their farmers. Thus, by non-discriminating,<br />

we are ahead of the Americans’ practices.<br />

Then, what the EU h<strong>as</strong> also done is to give its<br />

support only under certain conditions; among<br />

the main ones, the farmers must fulfil higher<br />

environmental st<strong>and</strong>ards, higher animal welfare<br />

st<strong>and</strong>ards <strong>and</strong> higher nutritional st<strong>and</strong>ards<br />

compared to other parts of the world. This is<br />

the real justification.<br />

■ Dialogues: In your opinion, what<br />

me<strong>as</strong>ures can the European Commission put<br />

together to fight against import barriers from<br />

African countries?<br />

FF: Truly, international trade requires the use<br />

of certain minimal st<strong>and</strong>ards, <strong>as</strong> we cannot<br />

take the risk of importing dise<strong>as</strong>es. If they are<br />

not fulfilled, neither will you be allowed to<br />

export, nor will you find any market <strong>for</strong> your<br />

product. In my view, this is the area where the<br />

concept of “Aid <strong>for</strong> Trade” should take place,<br />

Rome, June 2008<br />

which w<strong>as</strong> propagated by Jozef Stiggitz. In<br />

other words, I think that the industrialized<br />

world must help the African countries, companies<br />

<strong>and</strong> farmers so that they become able to<br />

fulfil these minimal st<strong>and</strong>ards. There<strong>for</strong>e our<br />

st<strong>and</strong>ards must be improved, but we must help<br />

African farmers to implement them.<br />

Regarding trade barriers, it is a matter of<br />

fact that in the p<strong>as</strong>t, the EU st<strong>and</strong>ards were<br />

seen <strong>as</strong> a kind of “hidden” trade barrier, <strong>and</strong><br />

we must adapt them. The st<strong>and</strong>ards must<br />

be objective <strong>and</strong> the same <strong>for</strong> everybody.<br />

<strong>EMRC</strong>’s network <strong>for</strong>ums<br />

help public <strong>and</strong> private actors to<br />

think differently, <strong>and</strong> take action<br />

<strong>for</strong> themselves locally.<br />

In addition to that, African countries must reflect<br />

upon the ways that they implement their<br />

own rules: very often, there is a blockage in<br />

trade between African countries. We have<br />

only been recently aware of the fact that when<br />

countries introduce “export taxes” or “restrictions<br />

<strong>for</strong> imports”, at the end, these me<strong>as</strong>ures<br />

could become counter-productive since the<br />

purpose of offering a sustainable supply of<br />

food might not be met.<br />

■ Dialogues: The supply of food is currently<br />

a worldwide problem. <strong>EMRC</strong>’s AgriBusiness<br />

Forum in the FAO headquarters comes in<br />

line with the FAO <strong>Food</strong> Crisis summit held at<br />

the beginning of June in the same premises.<br />

Since <strong>EMRC</strong>’s <strong>for</strong>um puts businessmen <strong>and</strong><br />

thinkers together, what should be achieved<br />

in order to diminish the impact of this food<br />

crisis?<br />

FF: There is a difference between the way we<br />

h<strong>and</strong>le the present food crisis <strong>and</strong> what should<br />

be done in order to reduce the risk of a new<br />

crisis in the future. On the one h<strong>and</strong>, about the<br />

present crisis, the immediate reaction should<br />

be to incre<strong>as</strong>e the amount of money supplied<br />

by industrialized countries to the UN food<br />

programmes, since they directly fight against<br />

the incre<strong>as</strong>ing number of malnutrition<br />

c<strong>as</strong>es. On the other h<strong>and</strong>, the prospects<br />

<strong>for</strong> the future are much more complex. Concepts<br />

such <strong>as</strong> “one feeds all” don’t work in<br />

practice <strong>and</strong> cannot be adapted to any given<br />

situation. Tools are often not adapted to their<br />

specific weather conditions, <strong>and</strong> we should<br />

invest in the sectors of research <strong>and</strong> development.<br />

People should realize that Agriculture<br />

h<strong>as</strong> become a “know-how intensive” business.<br />

Another tool to prevent the crisis should be<br />

to incre<strong>as</strong>e networking co-operation; in other<br />

words, develop partnerships between private<br />

actors in the food supply chain, between<br />

both continents, so they can learn from each<br />

other. <strong>EMRC</strong>’s <strong>for</strong>um is precisely a way to<br />

stimulate the entrepreneurial behaviour in<br />

Africa. Besides, a new type of co-operation<br />

between private <strong>and</strong> public sectors must be<br />

found, following the example of the EU<br />

“twinning projects” developed towards its<br />

new member states.<br />

But in general, we should think about ways<br />

to incre<strong>as</strong>e our financial aid, <strong>and</strong> we could<br />

consider three approaches: First, the industrialized<br />

countries should fulfil their promise<br />

of allowing 0,7% of their GDP to aid <strong>and</strong> development.<br />

Second, we should try to reduce<br />

the risk of a bursting bubble created by the<br />

speculation on commodities, by introducing a<br />

“capital transition tax” on these operations.<br />

Third, we should establish an international<br />

trading system <strong>for</strong> CO 2<br />

certificates.<br />

Developing countries, which pollute less,<br />

could sell their rights on CO 2<br />

emissions to<br />

industrialized countries, allowing them to use<br />

such money <strong>for</strong> their own development. This<br />

is an innovative way to meet two objectives<br />

at once.<br />

In conclusion, we should stop all discussions<br />

about charity to the developing world, <strong>and</strong><br />

start talking about justice. We have to develop<br />

a new mentality, <strong>and</strong> <strong>EMRC</strong>’s network <strong>for</strong>ums<br />

are positive in the sense that they help public<br />

<strong>and</strong> private actors to think differently, <strong>and</strong><br />

take action <strong>for</strong> themselves locally. We must<br />

contribute to help the developing countries get<br />

the opportunity to speak out <strong>and</strong> participate in<br />

the international market economy. ■<br />

Quarterly - Summer 2008 -


<strong>EMRC</strong> AgriBusiness Forum 2008:<br />

Africa’s private sector h<strong>as</strong> solutions<br />

to face soaring commodity prices<br />

<strong>and</strong> food scarcity<br />

Agri<br />

FORUM<br />

2008<br />

Business<br />

Rome, Italy – The <strong>EMRC</strong> AgriBusiness Forum 2008 (18-20 June), held <strong>for</strong> the second consecutive<br />

year at the FAO (UN <strong>Food</strong> & Agriculture Organization), hosted 185 delegates from 38 countries.<br />

The international business event<br />

demonstrated a positive change in<br />

the African business environment:<br />

Africa attracts private international investment.<br />

Entrepreneurs, project owners, international<br />

investors <strong>and</strong> agricultural experts showc<strong>as</strong>ed<br />

practical business solutions <strong>for</strong> Africa’s food<br />

industry <strong>and</strong> agriculture. A major result of the<br />

<strong>for</strong>um w<strong>as</strong> the Western entrepreneurs’ confirmation<br />

to invest in Africa, establish plants <strong>and</strong><br />

take financial risks. The best initiatives <strong>and</strong><br />

projects were awarded with the <strong>EMRC</strong> Awards<br />

<strong>for</strong> their leadership in promoting Africa’s<br />

AgriBusiness development.<br />

<strong>EMRC</strong> expresses its gratitude to the sponsors<br />

at this year’s event: Olam, FARA, Monsanto,<br />

Diageo, Progis, Heineken, Rabobank,<br />

Infoterra <strong>and</strong> Africa Invest, who joined <strong>for</strong>ces<br />

in promoting a stronger collaboration in the<br />

The Project Incubator Award<br />

To encourage innovation <strong>and</strong> entrepreneurship in<br />

Africa, <strong>EMRC</strong> initiated the “Project Incubator Award”<br />

<strong>for</strong> the presentation of the best project in economic<br />

<strong>and</strong> social terms. At the presentation of the award,<br />

Pierre Van Helder, President of the jury <strong>and</strong> Managing<br />

Director of the Rabobank Foundation, announced that<br />

the Foundation will finance a $10.000 prize <strong>for</strong> the next<br />

winner of the award.<br />

Winners of the “Project Incubator<br />

Award”: Adries Muk<strong>as</strong>hema & Michelle<br />

Shilling of CGIS, Rw<strong>and</strong>a.<br />

The project consists of developing <strong>and</strong> providing models of <strong>as</strong>sistance in the traceability <strong>and</strong><br />

the marketing of coffee, b<strong>as</strong>ed on the Geographical In<strong>for</strong>mation Systems. This will improve the<br />

living conditions of the local populations <strong>and</strong> will contribute to the economic growth.<br />

Two other projects were amongst the finalists:<br />

Jeff Kalembe- Cropserve, Zambia<br />

Cropserve Zambia is an agro-chemical company which h<strong>as</strong> been operating in Zambia<br />

<strong>for</strong> 15 years. Cropserve introduced a project on the control of weeds.<br />

Thom<strong>as</strong> ROETTGEN- MGF <strong>and</strong> the Palm Oil Project, Ghana<br />

A project established to optimise the production of palm oil. The project envisages<br />

the construction of 20 decentralized mills. Part of the produced palm oil is used in<br />

a generator plant, providing electricity neutral in CO 2<br />

emissions.<br />

private sector in developing countries.<br />

Special thanks go to the FAO <strong>for</strong> their continued<br />

support <strong>and</strong> partnership during the preparation<br />

of the <strong>for</strong>um <strong>and</strong> to the supporting organisations:<br />

Winrock International, IFAD, OECD,<br />

The Earth Institute of the Columbia University,<br />

CTA <strong>and</strong> the Ecosocial Forum Europe.<br />

The Key Speakers<br />

underline the<br />

pressing issues<br />

The opening of the <strong>for</strong>um w<strong>as</strong> preceded<br />

by an in<strong>for</strong>mative workshop<br />

on “Innovation Strategies & Regional<br />

Innovation Systems”, led<br />

by Ilan Bijaoui, director of the<br />

International Innovation <strong>and</strong><br />

Business Institute in Israel.<br />

The official opening of<br />

AgriBusiness 2008 w<strong>as</strong><br />

marked with speeches from<br />

Pierre Mathijsen, president<br />

of <strong>EMRC</strong> International,<br />

<strong>for</strong>mer Director General at<br />

the European Commission<br />

<strong>and</strong> James Butler, Deputy<br />

Director General of the<br />

FAO, focusing on the importance<br />

of PPPs.<br />

Mr Butler also highlighted<br />

the benefit of summit<br />

meetings stating that<br />

“<strong>EMRC</strong>’s Forum provides<br />

an excellent plat<strong>for</strong>m to exchange<br />

ide<strong>as</strong> <strong>and</strong> better practices”.<br />

The Keynote Speaker at the <strong>for</strong>um<br />

w<strong>as</strong> Franz Fischler, President<br />

of the Ecosocial Forum Europe <strong>and</strong><br />

European Commissioner <strong>for</strong> Agricultural<br />

<strong>and</strong> Rural Development from<br />

1995 to 2004. Mr Fischler emph<strong>as</strong>ised<br />

the need <strong>for</strong> further international coopera-<br />

tion if key challenges were to be successfully<br />

addressed. During the three day <strong>for</strong>um a wide<br />

range of successful business initiatives were<br />

presented <strong>as</strong> examples of an exp<strong>and</strong>ing environment<br />

of sustainable development in Africa.<br />

Specific sessions on Public-Private Partnerships<br />

highlighted the benefit of PPP’s <strong>as</strong> a vital<br />

plat<strong>for</strong>m that can be applied in a variety of<br />

fields such <strong>as</strong> research, the development of<br />

infr<strong>as</strong>tructure <strong>and</strong> training.<br />

Further presentations <strong>and</strong> discussions were<br />

held on investment <strong>and</strong> research in the<br />

African <strong>Agro</strong>-<strong>Food</strong> industry, the growing role<br />

of research <strong>and</strong> innovation in African agriculture<br />

<strong>and</strong> wealth creation through the agricultural<br />

sector. Specific projects <strong>and</strong> success<br />

stories were also presented <strong>as</strong> concrete proof<br />

that the agriculture sector in Africa is now a<br />

viable investment opportunity <strong>for</strong> <strong>for</strong>eign<br />

businesses.<br />

Throughout the <strong>for</strong>um sessions, delegates<br />

were also given the valuable opportunity to<br />

have one-on-one meetings thus enabling solid<br />

contacts <strong>and</strong> partnerships to be <strong>for</strong>med.<br />

Forums play a crucial role<br />

in furthering cooperation<br />

<strong>and</strong> development<br />

Andrew Maiyo from the Kenya Bureau of<br />

St<strong>and</strong>ards said his attendance at the <strong>for</strong>um had<br />

been very beneficial: “<strong>EMRC</strong> is one of the<br />

most important organisations in developing<br />

networks <strong>for</strong> Africa with development partners<br />

<strong>and</strong> business people.”<br />

A belief echoed by the Managing Director<br />

of <strong>EMRC</strong>, Idit Miller, who summarised the<br />

<strong>for</strong>um saying that “there is not a lack of money<br />

in Africa, what’s lacking are the projects<br />

<strong>and</strong> the partnerships, that we must promote,<br />

so that economic profit <strong>and</strong> social benefit go<br />

h<strong>and</strong> in h<strong>and</strong>.” ■<br />

Prizes winners<br />

<strong>EMRC</strong> Awards 2008:<br />

A vital moment of the <strong>for</strong>um w<strong>as</strong> the gala dinner, where<br />

individuals were honoured <strong>for</strong> their achievements in Africa’s<br />

economic development.<br />

■ Adries Muk<strong>as</strong>hema & Michelle Shilling,<br />

GCIS, Rw<strong>and</strong>a. For innovative use of satellites<br />

in the cultivation of coffee.<br />

■ Mamadou Djite, Agral Export, Senegal. An<br />

export success story, facilitated by the <strong>EMRC</strong><br />

network.<br />

■ Monty Jones, FARA, Ghana. Successfully<br />

developed new agro-products specifically<br />

adapted to the African market.<br />

■ John Mbonu, Sierra Leone Breweries.<br />

Moved to introduce local ingredients rather<br />

than relying on imported ones.<br />

■ Sam Egwu, Former Governor of Ebonyi<br />

State, Federal Republic of Nigeria. For the<br />

development of financial facilities <strong>for</strong> farmers.<br />

■ Baba Yusuf, NEXIM Bank Nigeria. For successfully<br />

encouraging export-import activities.<br />

■ Jon Maguire, Africa Invest. Recognised<br />

<strong>for</strong> investing in one of the poorest African<br />

countries <strong>and</strong> <strong>for</strong> developing an important<br />

agricultural project.<br />

■ Peter Makanjuola, Chairman, House Committee<br />

on Agriculture, the Federal Republic of<br />

Nigeria. Received the Award <strong>as</strong> an encouragement<br />

to the Nigerian Government to pursue its<br />

agricultural development policy.<br />

■ Erelu Obada, Deputy Governor of Osun<br />

State, Federal Republic of Nigeria. For the<br />

state’s ef<strong>for</strong>ts to stimulate the financial facilities<br />

offered to farmers.<br />

■ Dimiji Bankole, Speaker of the House of<br />

Representatives of the Federal Republic of<br />

Nigeria. Received the Award <strong>for</strong> the ef<strong>for</strong>ts<br />

made to rein<strong>for</strong>ce the legislation in favour of<br />

the less favoured populations.<br />

- DIALOGUES - <strong>EMRC</strong><br />

Quarterly - Summer 2008 -


Export rather than<br />

import!<br />

A message from Monty Jones, Executive<br />

Director of FARA (Forum <strong>for</strong> Agricultural Research<br />

in Africa)<br />

“Africa is today in a very difficult<br />

situation”, says Monty<br />

Jones, Executive Director of<br />

FARA. “The poorest countries in<br />

the world are in Africa <strong>and</strong> un<strong>for</strong>tunately<br />

we are not producing<br />

enough food to feed our people.<br />

And now global food shortages<br />

are <strong>for</strong>cing prices up leading to<br />

demonstrations <strong>and</strong> even riots.<br />

The present crisis is the outcome<br />

of many interlinked factors.<br />

The traditional low-input lowoutput<br />

farming systems <strong>and</strong> acquired<br />

preferences <strong>for</strong> imported<br />

foods combine to create local<br />

food deficits. This h<strong>as</strong> left Africa<br />

very vulnerable to the impacts of<br />

rising energy costs. Since oil prices<br />

are predicted to stay high we have<br />

to act very f<strong>as</strong>t to avoid famine.<br />

We must make food production<br />

<strong>for</strong> local consumption an immediate<br />

priority.<br />

In addition to incre<strong>as</strong>ing food<br />

production, African countries,<br />

with the potential to produce<br />

biofuels, will seek to do so <strong>for</strong><br />

import substitution <strong>and</strong> to earn<br />

<strong>for</strong>eign exchange. My feeling is<br />

that those countries that wish to<br />

produce biofuels should do so, on<br />

condition that they have examined<br />

all the trade offs <strong>and</strong> potential<br />

<strong>for</strong> unintended consequences<br />

very carefully <strong>and</strong> that the decisions<br />

are made transparently with<br />

the involvement of the affected<br />

communities.<br />

In addition to Biofuels, the<br />

rising dem<strong>and</strong> <strong>for</strong> food makes<br />

every crop a potential export commodity.<br />

To take advantage of this<br />

we need to improve our production<br />

methods to produce higher<br />

<strong>and</strong> more profitable yields. We<br />

also need to improve our market<br />

infr<strong>as</strong>tructure <strong>and</strong> in<strong>for</strong>mation<br />

systems so that producers are<br />

better <strong>and</strong> more efficiently connected<br />

to markets.<br />

National governments have a<br />

major responsibility <strong>for</strong> creating<br />

policy environments that are attractive<br />

to investors. In the l<strong>as</strong>t<br />

5 years Africa h<strong>as</strong> taken major<br />

strides in establishing continental<br />

<strong>and</strong> regional frameworks to support<br />

national ef<strong>for</strong>ts. AU-NEPAD<br />

h<strong>as</strong> developed the Comprehensive<br />

Africa Agriculture Development<br />

Programme (CAADP).<br />

FARA, which is responsible <strong>for</strong><br />

leading CAADP’s agricultural<br />

research pillar, h<strong>as</strong> a comprehensive<br />

set of five Networking Support<br />

Functions; advocacy <strong>and</strong> resource<br />

mobilisation; in<strong>for</strong>mation<br />

<strong>and</strong> technology dissemination,<br />

policies <strong>and</strong> markets, capacity<br />

strengthening; <strong>and</strong> partnerships<br />

<strong>and</strong> strategic alliances which<br />

exemplify, in practical terms, the<br />

spirit of partnership involving all<br />

institutions. This is also demonstrated<br />

by the <strong>EMRC</strong> which is<br />

making a major contribution to<br />

partnerships across the board”.<br />

Dr Jones is confident that Africa<br />

can achieve its agricultural development<br />

goals, which would<br />

improve the livelihoods of over<br />

60% of African labour. If this sector<br />

improves, it will be the driving<br />

<strong>for</strong>ce <strong>for</strong> all the other sectors<br />

of the economy <strong>and</strong> lead to more<br />

equitable <strong>and</strong> healthier societies.<br />

■<br />

Confidence trans<strong>for</strong>ms<br />

The Heineken experience<br />

The Heineken group brews over<br />

170 international premium, regional,<br />

local <strong>and</strong> speciality beers<br />

<strong>and</strong> ciders <strong>and</strong> is one of the<br />

world’s leading brewers in terms<br />

of sales volume <strong>and</strong> profitability.<br />

The group is also a leader in terms<br />

of social accountability. Heineken<br />

requires all of its operating companies<br />

to implement a specially<br />

developed program to combat<br />

corruption, child labour, sexual<br />

har<strong>as</strong>sment, discrimination <strong>and</strong><br />

the spread of HIV/AIDS.<br />

It h<strong>as</strong> a long-st<strong>and</strong>ing presence in<br />

Africa, where incre<strong>as</strong>ing purch<strong>as</strong>ing<br />

power h<strong>as</strong> made beer more af<strong>for</strong>dable.<br />

Heineken began operations<br />

in Sierra Leone in 1962 but<br />

had to suspend its activity during<br />

the civil war, re-opening again in<br />

2000. Since the brewery’s installations<br />

<strong>and</strong> infr<strong>as</strong>tructure were<br />

completely destroyed, an investment<br />

of €20 million w<strong>as</strong> pumped<br />

into the Sierra Leone Brewery<br />

Ltd, (SLBL) by the joint shareholders<br />

Heineken <strong>and</strong> Diageo to<br />

get the business running again.<br />

“Heineken is one of the few <strong>for</strong>eign<br />

companies that demonstrated<br />

the necessary confidence to re-invest<br />

in the local economy”, says<br />

John Mbonu, General Manager of<br />

SLBL. “Several major tobacco,<br />

pharmaceutical <strong>and</strong> confectionary<br />

concerns who were here when<br />

the going w<strong>as</strong> good, have not returned”.<br />

To reduce its dependency on<br />

imported raw materials, SLBL<br />

initiated a project <strong>for</strong> the development<br />

of sorghum cultivation in<br />

collaboration with the European<br />

Cooperative <strong>for</strong> Rural Development<br />

(EUCORD).<br />

“It may have been e<strong>as</strong>ier to find<br />

major farming consortiums to<br />

invest in large scale mechanised<br />

grain farming, but preference w<strong>as</strong><br />

given to small-holder farmers.<br />

Today the 3,500 local farmers <strong>and</strong><br />

co-operatives provide 45% of the<br />

brewery’s needs”, says Mbonu.<br />

“We are also investing in a cleaning<br />

<strong>and</strong> milling plant <strong>for</strong> processing<br />

the sorghum <strong>and</strong> are able to<br />

send our employees to nearby<br />

Nigeria <strong>for</strong> training instead of<br />

Europe. I have been with<br />

Heineken <strong>for</strong> many years <strong>and</strong> can<br />

truly say that seeing this trans<strong>for</strong>mation,<br />

<strong>and</strong> the impact on the<br />

community, makes me feel very<br />

happy.” ■<br />

Diageo: Labor, grains<br />

<strong>and</strong> water<br />

Diageo is the world’s leading<br />

premium drinks business, offering<br />

an impressive range of beverages<br />

available worldwide. The<br />

company employs over 23.000<br />

people worldwide with offices<br />

in 80 countries <strong>and</strong> a trading<br />

presence in 180.<br />

Diageo is active in brewing <strong>and</strong><br />

distilling in the majority of sub-<br />

Saharan African countries <strong>and</strong><br />

Nigeria h<strong>as</strong> become the second<br />

largest market <strong>for</strong> Guinness<br />

worldwide. Diageo Africa region<br />

is responsible <strong>for</strong> nearly<br />

one third of Diageo’s net sales<br />

of beer globally <strong>and</strong> its 4.000<br />

employees represent 20% of the<br />

global work<strong>for</strong>ce.<br />

As a business that relies heavily<br />

on agricultural inputs <strong>and</strong> is committed<br />

to the growth of wealth in<br />

Africa, Diageo seeks to exp<strong>and</strong><br />

the link between agriculture <strong>and</strong><br />

development, recognizing that<br />

agriculture can provide opportunities<br />

to address extreme poverty<br />

in Africa. The company is<br />

involved in hundreds of community<br />

activities <strong>and</strong> strives to create<br />

mutually fulfilling relationships<br />

<strong>and</strong> partnerships.<br />

The raw materials used in brewing<br />

include hops, sugar, water<br />

<strong>and</strong> rice <strong>and</strong> especially grains:<br />

barley, sorghum <strong>and</strong> maize. In the<br />

p<strong>as</strong>t these were imported, but new<br />

recipes <strong>and</strong> seed varieties have<br />

been developed, enabling the<br />

use of local barley <strong>and</strong> sorghum.<br />

Specific investments ensure access<br />

to high-yield seeds <strong>as</strong> well<br />

<strong>as</strong> fertilizers <strong>and</strong> herbicides. The<br />

gr<strong>as</strong>s roots business partners are<br />

those who need the income most:<br />

the local small-scale farmers.<br />

Another area of involvement is<br />

the supply of water. The Diageo<br />

program ‘Water of Life’ w<strong>as</strong><br />

launched in 2000, focusing on<br />

the supply of clean drinking water<br />

to people in Africa. It w<strong>as</strong> accelerated<br />

in 2006 under the title<br />

‘1 Million Challenge’ <strong>and</strong> aims to<br />

supply one million people annually<br />

with clean water until 2015.<br />

In 2007 over 840.000 people benefitted<br />

from 38 water <strong>and</strong> sanitation<br />

projects in Kenya, Ug<strong>and</strong>a,<br />

Tanzania, Nigeria, Burkino F<strong>as</strong>o,<br />

Ethiopia, Cameroon, Ghana <strong>and</strong><br />

South Africa. The projects are<br />

b<strong>as</strong>ed on local needs, low cost<br />

solutions <strong>and</strong> available technologies<br />

<strong>and</strong> are carried out in close<br />

collaboration with local governments,<br />

NGOs <strong>and</strong> community<br />

organizations. ■<br />

“All is not doom<br />

<strong>and</strong> gloom”<br />

FAO calls <strong>for</strong> urgent action on<br />

food security<br />

“With respect to the present<br />

international crisis in food supply<br />

<strong>and</strong> food prices, it is to the<br />

credit of the FAO that we alerted<br />

the world to the need <strong>for</strong> urgent<br />

action in June 2007”, says Nick<br />

Parsons, Director, Communications<br />

Division of the FAO. “We<br />

are all the more happy that food<br />

security w<strong>as</strong> high on the agenda<br />

at the recent G8 summit in Japan.<br />

On this occ<strong>as</strong>ion Robert<br />

Zoellich, President of the World<br />

Bank, stated ‘What we are witnessing<br />

is not a natural dis<strong>as</strong>ter<br />

– a silent tsunami (…) It is<br />

a man-made cat<strong>as</strong>trophe <strong>and</strong> <strong>as</strong><br />

such must be fixed by people’.<br />

Indeed: people - governments,<br />

international institutions <strong>and</strong><br />

private enterprises - need to take<br />

note <strong>and</strong> take action, get the priorities<br />

right <strong>and</strong> make the inevitable<br />

commitments <strong>and</strong> investments.<br />

The challenge is that this is a<br />

complex issue, requiring solid,<br />

long term strategies, but the<br />

good news is that the problem<br />

can become the solution. Precisely<br />

because food prices are<br />

high, this thing can be turned<br />

around <strong>and</strong> become an opportunity.<br />

As we all know, investors<br />

are attracted to are<strong>as</strong> where there<br />

is some guarantee of returns!<br />

And there is money to be made<br />

in investments all along the food<br />

chain – from healthy planting<br />

material, irrigation <strong>and</strong> fertilization<br />

to packaging <strong>and</strong> distribution.<br />

We need to be creative, take<br />

a holistic view of the situation<br />

<strong>and</strong> look at what can be gained.<br />

Despite the urgency, all is certainly<br />

not doom <strong>and</strong> gloom”.<br />

On the issue of local versus<br />

global markets, the general consensus<br />

is that in countries where<br />

there is the most poverty <strong>and</strong><br />

malnutrition, the priority should<br />

be to improve the livelihood of<br />

local populations, both rural <strong>and</strong><br />

urban, be<strong>for</strong>e looking to export.<br />

To achieve this, however, more<br />

investment is needed in storage<br />

facilities <strong>and</strong> transport infr<strong>as</strong>tructure.<br />

The present loss of harvests at<br />

local <strong>and</strong> regional levels – up to<br />

50% in some countries in Africa<br />

– needs to be turned around. This<br />

means that local government<br />

policies should favour these<br />

are<strong>as</strong> of development.<br />

It goes without saying that good<br />

governance is essential to attract<br />

private sector investment. Noone<br />

can be expected to invest<br />

without <strong>as</strong>surances that their<br />

money will reach its destination<br />

<strong>and</strong> do the job it is meant<br />

<strong>for</strong>! Private Public Partnerships<br />

bring good results in many c<strong>as</strong>es,<br />

but partnerships between countries<br />

also look very promising.<br />

For instance: between countries<br />

that have abundant arable l<strong>and</strong><br />

but no money <strong>and</strong> those that<br />

have no arable l<strong>and</strong>, but strong<br />

financial resources.<br />

“Facilitating such partnerships<br />

is where the <strong>EMRC</strong> can<br />

play a key role”, says Mr Parsons.<br />

“The bottom line is: no<br />

one country can fix the problem<br />

alone, but if we tackle this together<br />

the results can be terrific!<br />

The international community<br />

should not see developing countries<br />

<strong>as</strong> receivers of charity, but<br />

<strong>as</strong> l<strong>and</strong>s of opportunity” ■<br />

- DIALOGUES - <strong>EMRC</strong><br />

Quarterly - Summer 2008 -


I nterview<br />

Mohamadou Bayero Fadil<br />

CEO Group Fadil, Cameroon<br />

Rome, June 2008<br />

From origin to<br />

customer: Olam,<br />

a global enterprise<br />

Established in 1989 <strong>and</strong> headquartered<br />

in Singapore, OLAM<br />

h<strong>as</strong> evolved from a single country,<br />

single product trader to a<br />

leading global integrated supply<br />

chain manager of agricultural<br />

products <strong>and</strong> food ingredients.<br />

The supply chain includes sourcing,<br />

processing, packaging <strong>and</strong><br />

shipping, marketing <strong>and</strong> distribution<br />

<strong>as</strong> well <strong>as</strong> risk management<br />

<strong>and</strong> training.<br />

The company presently sources<br />

14 different products <strong>and</strong> supplies<br />

to 4,000 customers in over<br />

60 destination markets worldwide<br />

<strong>and</strong> is constantly on the rise. It is<br />

directly present in 56 countries,<br />

22 of them in Africa, where it h<strong>as</strong><br />

major investments in agriculture<br />

<strong>and</strong> employs a large work<strong>for</strong>ce.<br />

The products sourced <strong>and</strong><br />

processed by OLAM include<br />

coffee, cocoa, c<strong>as</strong>hew, sheanuts,<br />

sesame, rice, different kinds of<br />

beans (pulses), spices, sugar,<br />

dairy products, cotton <strong>and</strong> teak<br />

wood.<br />

In addition to providing employment,<br />

OLAM is committed to<br />

supporting the community <strong>and</strong><br />

protecting the environment in<br />

every country where it is present.<br />

OLAM’s expertise <strong>as</strong>sists farmers<br />

<strong>and</strong> collectors to ensure a<br />

consistent supply of good quality<br />

produce to the benefit of all parties.<br />

In developing countries the<br />

company’s processing activities<br />

support technology transfer <strong>and</strong><br />

help build local capacity, thereby<br />

generating higher <strong>for</strong>eign exchange<br />

earnings.<br />

Sustainability initiatives are interwoven<br />

into the business model<br />

<strong>and</strong> aim at making meaningful<br />

social impact. Stable relationships<br />

are built up over time with<br />

the suppliers comprised of smallholder<br />

farmers, village level<br />

buying agents <strong>and</strong> cooperatives.<br />

OLAM provides micro-financing,<br />

seed capital <strong>for</strong> local agents,<br />

practical <strong>and</strong> technical support,<br />

fair <strong>and</strong> transparent pricing <strong>and</strong><br />

regular market updates.<br />

It is widely acknowledged that<br />

profitable market access <strong>for</strong> developing<br />

countries is significantly<br />

reduced by agricultural subsidies<br />

<strong>and</strong> protective tariffs. In this context<br />

OLAM h<strong>as</strong> become actively<br />

involved in advocacy to achieve<br />

more open <strong>and</strong> competitive global<br />

markets that honour legitimate<br />

comparative advantages of<br />

the producing countries in which<br />

it operates. ■<br />

Philippe C<strong>as</strong>taing, Monsanto:<br />

“African countries<br />

should be allowed<br />

to make their own<br />

decisions”<br />

For over 30 years now, Monsanto<br />

h<strong>as</strong> provided African farmers<br />

with agricultural products to help<br />

reduce soil plowing <strong>and</strong> conservation<br />

tillage, <strong>and</strong> limit erosion.<br />

More recently, the company’s<br />

focus h<strong>as</strong> been on developing<br />

conventional seeds, in particular<br />

cotton <strong>and</strong> maize, which is<br />

the continent’s main staple food.<br />

“We are breeding maize <strong>and</strong> cotton<br />

to improve varieties <strong>and</strong> produce<br />

better crops every year”,<br />

says Philippe C<strong>as</strong>taing, who w<strong>as</strong><br />

present at the AgriBusiness Forum<br />

held in Rome in June this<br />

year.<br />

“Even with conventional seeds<br />

<strong>and</strong> fertilisers we can quadruple<br />

yields, <strong>as</strong> h<strong>as</strong> been the c<strong>as</strong>e <strong>for</strong><br />

example in Malawi”. But beyond<br />

conventional seeds, the future<br />

lies with biotechnology <strong>and</strong> the<br />

development of genes which produce<br />

drought- <strong>and</strong> insect-resistant<br />

varieties of maize <strong>and</strong> cotton.<br />

“We certainly do not see biotech<br />

crops <strong>as</strong> the answer to everything,<br />

but rather <strong>as</strong> a very useful additional<br />

tool to improve crops <strong>and</strong><br />

provide solutions <strong>for</strong> the future of<br />

agriculture”, says Mr C<strong>as</strong>taing.<br />

The Water Efficient Maize <strong>for</strong><br />

Africa project (WEMA), <strong>for</strong> example,<br />

is about helping to protect<br />

African farmers against climate<br />

uncertainty. Its success will have<br />

a crucial impact on food security<br />

in Africa. “But, says Mr C<strong>as</strong>taing,<br />

we need a regulatory framework<br />

<strong>and</strong> the political will to ensure the<br />

success of biotech crops”. Some<br />

countries, such <strong>as</strong> Burkina F<strong>as</strong>o<br />

<strong>and</strong> South Africa, are leading the<br />

way in this regard.<br />

“We want to be transparent with<br />

all stakeholders, including governements<br />

<strong>and</strong> NGOs, so that<br />

everyone can see the results <strong>for</strong><br />

themselves”. Mr C<strong>as</strong>taing further<br />

emph<strong>as</strong>ises that Monsanto’s approach<br />

is not only commercial,<br />

but also humanitarian. In fact,<br />

more than a decade ago the company<br />

took the strategic decision<br />

to make its knowledge available<br />

to poor countries, a crucial<br />

step <strong>for</strong> the African continent.<br />

The technology is there, <strong>and</strong> it’s<br />

now up to the governements to<br />

take the ball <strong>and</strong> run with it, in<br />

Mr C<strong>as</strong>taing’s words. ”European<br />

countries <strong>and</strong> other stakeholders<br />

need to allow African countries<br />

to make their own decisions in<br />

these matters”. Agriculture is the<br />

key towards sustainable development<br />

in Africa. “And Monsanto<br />

is committed to Africa <strong>and</strong> its development<br />

– we’re in <strong>for</strong> the long<br />

term <strong>and</strong> not just about making<br />

profits”. ■<br />

Mohamadou Bayero Fadil holds an MBA<br />

<strong>and</strong> h<strong>as</strong> lead the Fadil Group <strong>for</strong> 15 years.<br />

The Group is active in: chemical cleaning<br />

products, agro-industry, tourism <strong>and</strong> real<br />

estate. One of Cameroon’s leading industrialists,<br />

Fadil says that succeeding in the<br />

business world takes the trinity of hard<br />

work, courage <strong>and</strong> sacrifice.<br />

■ Dialogues: What drove you to choose your<br />

business activity?<br />

Mohamadou Fadil: My ambition w<strong>as</strong> to contribute<br />

modestly to the socio-economic development<br />

of my country, thus fighting unemployment.<br />

Thanks to my studies in the US, my<br />

sense of entrepreneurship led me not only to<br />

bear risks, but also to overcome the obstacles<br />

encountered. For a prosperous entrepreneur,<br />

success is boosted by p<strong>as</strong>sion <strong>and</strong> ple<strong>as</strong>ure.<br />

The key to success lies in our capacity to resolve<br />

problems within a re<strong>as</strong>onable time frame.<br />

This requires the trinity of hard work, courage<br />

<strong>and</strong> sacrifice. In my c<strong>as</strong>e, I w<strong>as</strong> lucky that my<br />

father w<strong>as</strong> an industrialist <strong>and</strong> with the help<br />

of other Cameroonian businessmen who<br />

enormously enhanced my zeal towards entrepreneurship,<br />

I cultivated certain values,<br />

like the respect of one’s word, respect of<br />

engagements <strong>and</strong> above all a high sense of<br />

appreciating our environment. With a professional<br />

experience acquired in major enterprises<br />

(CCC, SELCAM, Le Meridien), I<br />

b<strong>as</strong>ed my philosophy on innovation, which<br />

is a condition sine qua non <strong>for</strong> survival <strong>and</strong><br />

development, <strong>and</strong> a stimulant to competition.<br />

Thanks to this capacity to constantly<br />

innovate <strong>and</strong> improve, coupled with professional<br />

human resources, our industrial complex<br />

h<strong>as</strong> become the pride of our nation.<br />

■ Dialogues: How do you evaluate the importance<br />

of your personality in your enterprise?<br />

MBF: I am a guardian of an empire <strong>and</strong> do<br />

not spare the road to consolidate the achievements<br />

of a heritage that is now reaping the<br />

fruits of rigour <strong>and</strong> method. Some think that<br />

I am merciless <strong>and</strong> severe, but it is not the<br />

c<strong>as</strong>e. The truth is that I am a defender of certain<br />

virtues such <strong>as</strong> discipline <strong>and</strong> know-how.<br />

The prosperity of an enterprise like ours would<br />

not be possible without this firmness. It is this<br />

discipline in management, these qualities of<br />

responsibility <strong>and</strong> firmness, which I try to inspire<br />

in my collaborators since I w<strong>as</strong> called to<br />

<strong>for</strong>tify our family heritage in July 1985. This<br />

responsibility w<strong>as</strong> greatly felt in September<br />

1993, after the death of the Group’s founder.<br />

We should observe professionalism instead of<br />

irresponsibility <strong>and</strong> e<strong>as</strong>y-goingness, <strong>as</strong> it h<strong>as</strong><br />

always been the driving <strong>for</strong>ce of the founding<br />

father. Having been part of this way of life<br />

that prohibits all distraction <strong>and</strong> laissez-faire,<br />

factors that lead to hard work <strong>and</strong> creativity,<br />

I can describe my life with this simple proverb:<br />

I venture <strong>and</strong> by that I survive.<br />

■ Dialogues: What advice would you give<br />

to a beginner entrepreneur, considering the<br />

opportunities in your country?<br />

MBF: He h<strong>as</strong> to strongly believe in his capacity<br />

<strong>and</strong> his project; he must be prudent, study<br />

profoundly the project <strong>and</strong> the socio-economic<br />

environment in which he functions <strong>and</strong> <strong>as</strong>sess<br />

the cost <strong>and</strong> expenditures be<strong>for</strong>e deciding.<br />

Once started, he h<strong>as</strong> to be in a position to rapidly<br />

overcome any difficulties encountered,<br />

have spontaneous reactions to competition<br />

<strong>and</strong> un<strong>for</strong>eseen market fluctuations, <strong>for</strong>, in the<br />

business world, ultra-conservative policies<br />

<strong>and</strong> lack of imagination are not pardoned.<br />

This leads me to tackle the investment opportunities<br />

in Cameroon <strong>and</strong> all over Africa.<br />

All sectors are a priori viable <strong>and</strong> one just<br />

needs to be intelligent <strong>and</strong> dynamic to do<br />

good business. In the c<strong>as</strong>e of Cameroon, the<br />

environment created by the admission of our<br />

country into the Highly Indebted <strong>and</strong> Poor<br />

Countries (HIPC) initiative, is an opportunity<br />

to take advantage of. The new Investment<br />

Charter is apparently indicative of a strong<br />

government will to build a prosperous <strong>and</strong><br />

competitive economy <strong>for</strong> the development of<br />

investment <strong>and</strong> savings.<br />

At my level, the Group that I manage is open<br />

to all initiatives favourable to entrepreneurial<br />

development. We have often received students<br />

on internship in all our structures. My advice<br />

to youngsters is to work <strong>as</strong> a team <strong>and</strong> above<br />

all make sure that they venture into domains<br />

that are not yet saturated, where there is a market<br />

dem<strong>and</strong>.<br />

■ Dialogues: Taking your business experience<br />

in the agro-industry, what are your<br />

views on the world food crisis <strong>and</strong> solutions<br />

to counter it?<br />

MBF: Speculation concerns almost all products<br />

nowadays, affects commodity prices<br />

<strong>and</strong> there<strong>for</strong>e final products; still animal<br />

husb<strong>and</strong>ry <strong>and</strong> agriculture generate important<br />

revenues. However, since Africa<br />

still cannot meet local needs, I would<br />

not stimulate the export of some crucial<br />

products. There<strong>for</strong>e, the subsidies given<br />

to European or American farmers change<br />

the game of competitiveness <strong>and</strong> precipitate<br />

the rise of prices on the international<br />

market. Limiting the exports will encourage<br />

national production. Besides, migration<br />

from urban to rural are<strong>as</strong> h<strong>as</strong> to be<br />

encouraged, in order to regain interest<br />

in the agro-industry. The counter-example is<br />

un<strong>for</strong>tunately seen in Angola <strong>and</strong> Nigeria today,<br />

especially due to the petroleum industry.<br />

My message is that my group grows with Cameroon:<br />

new projects <strong>and</strong> ide<strong>as</strong> present so many<br />

opportunities one should investigate. <strong>EMRC</strong><br />

plays a vital role in counselling <strong>and</strong> connecting<br />

businessmen around a theme, <strong>and</strong> we Africans<br />

should use this plat<strong>for</strong>m in order to go<br />

further, until projects are submitted positively<br />

to a banking institution. My suggestion is that<br />

in order to reach more actors directly related<br />

to African business issues, <strong>EMRC</strong> should organize<br />

such <strong>for</strong>ums on our continent! ■<br />

- DIALOGUES - <strong>EMRC</strong><br />

Quarterly - Summer 2008 -


I nterview<br />

José Amaro Tati<br />

Governor of the Province of Bié /Angola<br />

I nterview<br />

Anibal Lopes Rocha<br />

Governor of the Province of Cabinda /Angola<br />

Governor José Amaro Tati is graduate of<br />

Faculdade de Ciênci<strong>as</strong> Agrári<strong>as</strong> do Huambo<br />

in <strong>Agro</strong>nomic <strong>Engine</strong>ering. He w<strong>as</strong> Vice<br />

Minister of Agriculture <strong>and</strong> later Governor<br />

of Cabinda. In 2002, José Amaro Tati w<strong>as</strong><br />

appointed Governor of Bié.<br />

■ Dialogues: Since the peace agreement,<br />

Angola h<strong>as</strong> per<strong>for</strong>med well in rural <strong>and</strong><br />

other are<strong>as</strong>. Being Governor during the reconstruction<br />

of the Province of Bié over the<br />

p<strong>as</strong>t years, what perspectives do you have on<br />

the development of this Region?<br />

Governor Tati: Bié is a province located<br />

in the heart of Angola, that suffered greatly<br />

during the war. It h<strong>as</strong><br />

given us many military<br />

comm<strong>and</strong>ers <strong>and</strong> soldiers<br />

from both sides<br />

(MPLA <strong>and</strong> UNITA).<br />

The violence of the war<br />

w<strong>as</strong> very intense in the<br />

province <strong>and</strong> dev<strong>as</strong>tated<br />

the region. With the<br />

arrival of peace (2002)<br />

we concentrated the reconstruction<br />

work into<br />

two major are<strong>as</strong>. First,<br />

we removed all human<br />

bodies around the<br />

province <strong>and</strong> built a<br />

cemetery where we<br />

buried seven thous<strong>and</strong><br />

bodies. It w<strong>as</strong> a sad<br />

<strong>and</strong> n<strong>as</strong>ty operation,<br />

because we buried parents,<br />

brothers, sisters,<br />

children <strong>and</strong> friends.<br />

Then, we started with a<br />

reconstruction program<br />

of b<strong>as</strong>ic infr<strong>as</strong>tructures<br />

in order to restore the confidence <strong>and</strong> dignity<br />

of the population. We are undertaking a strong<br />

ef<strong>for</strong>t in rebuilding public hospitals, schools<br />

<strong>and</strong> water supply systems <strong>and</strong> in reconnecting<br />

the electricity. Up to now, we feel we have<br />

achieved major progress.<br />

Another priority w<strong>as</strong> to revive the private initiative<br />

<strong>and</strong> the trade in the region. Small <strong>and</strong><br />

Medium business <strong>as</strong>sociations were established<br />

<strong>and</strong> they are doing an excellent job with<br />

the local entrepreneurs.<br />

But the key factor <strong>for</strong> the development of the<br />

Region w<strong>as</strong> peace which w<strong>as</strong> the crucial first<br />

step <strong>as</strong> without it people could have many<br />

things but would not have had any use <strong>for</strong><br />

them. Now, hopefully, peace h<strong>as</strong> definitely<br />

arrived, allowing us to give dynamism to the<br />

province. Now, we have the necessary peace<br />

to think <strong>and</strong> find solutions to our problems.<br />

Bié w<strong>as</strong> a province with more than 517,000<br />

displaced people in 2002. Many people died<br />

of hunger at that time.<br />

Initially, help came from the international<br />

community. Then the ef<strong>for</strong>t of our government<br />

in cooperating with the international community<br />

resulted in various projects that helped<br />

City of Kuito, Largo de Independência. Provincial Government Headquarters (right),<br />

Regional Parliment (centre).<br />

<strong>and</strong> impacted directly on the population. Now,<br />

with the progress of our agricultural sector in<br />

the province, we are solving some of our principal<br />

problems.<br />

■ Dialogues: You have spoken about the<br />

principal priorities of Education, Health,<br />

Electricity, Water, <strong>and</strong> Trade, but could you<br />

give us specific details of the programmes<br />

that the province is working on?<br />

JAT: Agriculture is a priority area. Specific<br />

projects have been established to redevelop<br />

the food supply chain. In the field of education<br />

we created a cohesive t<strong>as</strong>k<strong>for</strong>ce involving<br />

the population <strong>and</strong> the government, working<br />

<strong>as</strong> a team to address the b<strong>as</strong>ic educational<br />

needs. The government offered to provide<br />

teachers if communities could build or rebuild<br />

their schools. At the time we were not sure<br />

they would be able to do this. But so far the<br />

program h<strong>as</strong> worked well. We had 150.000<br />

students just after the peace agreement. After<br />

five years of peace we have 825.000 students<br />

<strong>and</strong> 13.000 teachers. A lot is possible through<br />

working in cooperation with our population.<br />

Regarding infr<strong>as</strong>tructure,<br />

we are giving<br />

priority to the main<br />

roads, bridges <strong>and</strong><br />

railways. We currently<br />

have teams<br />

working in Benguela,<br />

Moxico, Humbo <strong>and</strong><br />

Bié in order to connect<br />

the railway lines<br />

between theses provinces.<br />

■ Dialogues: Besides<br />

agriculture, what are<br />

the resources that the<br />

province h<strong>as</strong> to offer<br />

to private partners<br />

interested in investing<br />

in the province?<br />

JAT: We have metal<br />

<strong>and</strong> other rich minerals,<br />

like diamond<br />

mining. The government<br />

h<strong>as</strong> now established<br />

small diamond<br />

shops around the region to help prevent the<br />

illegal diamond market in the province <strong>and</strong><br />

across the borders.<br />

In addition there are now possibilities to exp<strong>and</strong><br />

our agro-food <strong>and</strong> construction industries<br />

<strong>and</strong> the medical sector. With these initiatives<br />

we hope to be able to offer more employment<br />

possibilities to our population <strong>and</strong> to contribute<br />

effectively to the sustainable development<br />

of the Region. ■<br />

Governor Rocha started his career in municipal<br />

administration residing <strong>for</strong> 20 years<br />

in the province of Zaire, progressing from<br />

Vice-Governor to Governor. Later, he w<strong>as</strong><br />

appointed Governor of Uige, Minister of<br />

Territorial Administration, <strong>and</strong> Governor<br />

of Lu<strong>and</strong>a. He h<strong>as</strong> been leading the province<br />

of Cabinda <strong>for</strong> 6 years now.<br />

■ Dialogues: What improvements in the<br />

Province of Cabinda would best portray the<br />

image of a “New Angola”?<br />

Governor Rocha: Without any doubt, peace<br />

is a determining factor to the creation of the<br />

necessary conditions <strong>for</strong> Angola’s reconstruction,<br />

so about a year ago, Cabinda reached a<br />

ce<strong>as</strong>e-fire agreement with the FLEC, the separatist<br />

movement. The national reconstruction<br />

program launched by President Dos Santos<br />

five years ago aimed especially at reconstructing<br />

infr<strong>as</strong>tructures in order to improve the<br />

population’s living conditions, health, education,<br />

electricity <strong>and</strong> water sectors were the<br />

most critical ones. In particular reference to<br />

Cabinda, a special biennial program valued at<br />

around 270 million USD h<strong>as</strong> been implemented.<br />

As an example, regarding electricity, we<br />

went from producing 4 to 42 Megawatts, from<br />

2002 until today. In the c<strong>as</strong>e of water supply,<br />

we went from 180 m 3 a day to 986 m 3 within<br />

the same period. Regarding infr<strong>as</strong>tructure, the<br />

airport w<strong>as</strong> trans<strong>for</strong>med in order to incre<strong>as</strong>e<br />

incoming flights from 12 to 78 weekly, <strong>and</strong> the<br />

port of Cabinda now receives 2000 containers<br />

per year instead of 1000 five years ago. There<br />

were also large investments regarding road access<br />

to the North <strong>and</strong> the expressway linking<br />

Cabinda to L<strong>and</strong>ane is under way. L<strong>and</strong>ane is<br />

set to become the logistical support area <strong>for</strong><br />

oil companies operating in the province.<br />

■ Dialogues: What implemented programmes<br />

would best represent the Province’s<br />

social responsibility towards its population?<br />

AR: Large investments have been made in<br />

the education sector. Besides building schools<br />

<strong>and</strong> institutes, we distribute educational material,<br />

free school lunches to over 100,000 children<br />

<strong>and</strong> school uni<strong>for</strong>ms at the beginning of<br />

the school year, which are made by local textile<br />

firms. Me<strong>as</strong>ures like these have served <strong>as</strong><br />

an incentive to maintain <strong>and</strong> attract children<br />

to school. Cabinda w<strong>as</strong> the first province to<br />

have the largest number of children attending<br />

school. At the university level, the state-held<br />

‘Universidade Agostinho Neto’ offers degrees<br />

linked to educational sciences, economics <strong>and</strong><br />

law. We also have two private universities <strong>and</strong><br />

this year will be the first one to welcome graduates.<br />

We wish to attract scholars in nearby<br />

provinces such <strong>as</strong> Zaire, Uige <strong>and</strong>, hopefully,<br />

Lu<strong>and</strong>a. In the health sector we are investing<br />

in the total modernization of the main hospital<br />

in Cabinda. We are also consolidating the<br />

<strong>as</strong>sistance network in the periphery, <strong>and</strong> have<br />

even created laundries <strong>as</strong> well <strong>as</strong> day-care facilities.<br />

We have been successfully working<br />

on specific programmes to fight HIV, tuberculosis<br />

<strong>and</strong> leprosy. We also have a program<br />

which we call “Nossa Aldeia-Nova Imagem”<br />

(Our Village – New Image), which is composed<br />

of selling subsidized zinc plates so that<br />

the population can build homes at moderate<br />

prices.<br />

■ Dialogues: What is your vision regarding<br />

the diversification of Cabinda’s local economy?<br />

AR: Cabinda is not purely oil & g<strong>as</strong>. Besides<br />

our precious wood, which is semi-trans<strong>for</strong>med<br />

locally so <strong>as</strong> to value it further <strong>and</strong><br />

also to generate employment, coffee h<strong>as</strong> been<br />

a great incentive <strong>for</strong> local producers, <strong>as</strong> this<br />

industry w<strong>as</strong> ab<strong>and</strong>oned <strong>for</strong> over 20 years.<br />

Today, following Lu<strong>and</strong>a,<br />

Cabinda is the province<br />

generating most revenues<br />

<strong>for</strong> the government, excluding<br />

oil & g<strong>as</strong>. Besides, major<br />

infr<strong>as</strong>tructure projects<br />

are on the way to trans<strong>for</strong>m<br />

Cabinda <strong>as</strong> a hub <strong>for</strong> the<br />

region, serving Gabon <strong>and</strong><br />

the Congos. This vision is<br />

possible today thanks to<br />

the new airport, the Cabinda-Soyo<br />

bridge <strong>and</strong> the<br />

port. <strong>Industry</strong> will develop<br />

thanks to a new factory <strong>for</strong><br />

palm oil production <strong>and</strong><br />

soap or margarine. On another<br />

level, tourism needs<br />

to develop through building<br />

two four-star hotels<br />

His Excellency the President of the Republic of<br />

Angola, José Eduardo dos Santos (left) <strong>and</strong><br />

Governor Anibal Rocha on the occ<strong>as</strong>ion of the<br />

50th anniversary of the province of Cabinda.<br />

<strong>and</strong> a marina in the Malembo region, so that<br />

international regatt<strong>as</strong> can also reach Cabinda.<br />

The province is there<strong>for</strong>e experiencing great<br />

developments with high growth indicators <strong>and</strong><br />

with excellent investment conditions..<br />

■ Dialogues: With the reconciliation agreement<br />

signed over a year ago, Cabinda is<br />

ready <strong>for</strong> prosperity. What is your strategy to<br />

attract more <strong>for</strong>eign investment?<br />

AR: Today Cabinda shows a fresh new look.<br />

Improving sanitation conditions <strong>and</strong> providing<br />

hospitals with the most modern tools are<br />

among our priorities. Mortality indicators have<br />

fallen <strong>as</strong> a consequence of the ef<strong>for</strong>ts. Besides,<br />

the population is very hospitable <strong>and</strong> we have<br />

good conditions to offer to potential investors.<br />

Through our website, www.gpcabinda.com,<br />

we offer incentives to support <strong>and</strong> promote investment.<br />

For large investments we even offer<br />

great tax exemptions. Interesting are<strong>as</strong> to develop<br />

are transportation, agriculture <strong>and</strong> construction.<br />

Building neighborhoods to accommodate<br />

<strong>for</strong>eigners <strong>and</strong> enlarging our airport<br />

runway to allow larger airplanes to l<strong>and</strong> are<br />

the next steps in setting Cabinda <strong>as</strong> an example<br />

<strong>for</strong> other provinces throughout Angola. ■<br />

Building schools <strong>and</strong> social housing show<br />

the provincial government’s commitment<br />

to social responsibility<br />

10 - DIALOGUES - <strong>EMRC</strong><br />

Quarterly - Summer 2008 - 11


Cabinda<br />

One of the most<br />

exciting investment<br />

opportunities<br />

in Africa<br />

The Angolan province of Cabinda is f<strong>as</strong>t becoming one of the most exciting<br />

places to invest in Africa. With its peculiar location <strong>as</strong> an exclave<br />

tucked between Congo-Brazzaville <strong>and</strong> the Democratic Republic of<br />

Congo, Cabinda st<strong>and</strong>s out among Angola’s 18 provinces: geographically,<br />

economically, <strong>and</strong> to a certain extent politically <strong>as</strong> well. It is one<br />

of the smaller Angolan provinces, with a l<strong>and</strong> surface of 7,300 km²,<br />

barely 0.6% of Angola’s total l<strong>and</strong> m<strong>as</strong>s. The main city <strong>and</strong> provincial<br />

capital, also called Cabinda, is an important port <strong>and</strong> is strategically<br />

located within a radius of 450 km from three major African capitals:<br />

Brazzaville, Kinsh<strong>as</strong>a, <strong>and</strong> of course Lu<strong>and</strong>a, the national capital of<br />

Angola.<br />

The province is subdivided into four municipalities: Cabinda, Cacongo,<br />

Buco Zau <strong>and</strong> Belize. The municipality of Cabinda itself is home to<br />

70% of the population, currently estimated at 275,000 people.<br />

Cabinda w<strong>as</strong> not spared by Angola’s dev<strong>as</strong>tating wars that crippled the<br />

country’s people, economy <strong>and</strong> infr<strong>as</strong>tructure <strong>for</strong> almost three decades.<br />

But peace h<strong>as</strong> now returned to the province <strong>and</strong> the rest of the country,<br />

enabling Angola, <strong>for</strong> the first time in decades, to focus on economic <strong>and</strong><br />

social development <strong>and</strong> make full use of its many resources to rebuild<br />

itself.<br />

Cabinda is firmly at the <strong>for</strong>efront of this exciting new dawn. The province<br />

holds an estimated 60% of Angola’s oil reserves, <strong>and</strong> currently<br />

produces around 1 million barrels per day, all of it offshore. It is clear,<br />

there<strong>for</strong>e, that oil <strong>for</strong>ms the backbone of Cabinda’s economy <strong>and</strong> that<br />

it makes a huge contribution to Angola’s total Gross Domestic Product<br />

(GDP). And prospects <strong>for</strong> the future are excellent. New surveys indicate<br />

that there may be even more onshore than offshore oil in the province,<br />

<strong>and</strong> if these findings are confirmed, Cabinda may soon deserve its<br />

description <strong>as</strong> the “Kuwait of Africa”.<br />

The provincial authorities in Cabinda, under the leadership of Governor<br />

Anibal Lopes Rocha, are determined to use these resources <strong>and</strong> the oil<br />

windfall to ensure that economic growth brings social <strong>and</strong> development<br />

benefits to all segments of the population. Soon after a peace agreement<br />

w<strong>as</strong> signed with the independantist FLEC movement in 2004, conditions<br />

were in place <strong>for</strong> the governor to announce the start of a Public<br />

Investment Programme <strong>and</strong> a Programme of Implementation <strong>and</strong> Improvement<br />

of B<strong>as</strong>ic Services to the Population. Three years down the<br />

line, the results are beginning to be visible on the ground.<br />

In 2007 alone, the province set <strong>as</strong>ide 219 million dollars to finance<br />

no less than 112 public works projects in the fields of housing, health<br />

services, education <strong>and</strong> transport <strong>and</strong> communications infr<strong>as</strong>tructure .<br />

In addition to public initiatives, there is also a clear political will to<br />

establish long-term partnerships with private companies, especially in<br />

the oil industry, <strong>for</strong> the development of the province. As an example of<br />

such partnerships, the provincial governement signed a protocol with oil<br />

giant Chevron, <strong>for</strong> a 20-year economic development program involving<br />

yearly investments by the company in the fields of public health, education<br />

<strong>and</strong> entrepreneurship .<br />

Several ambitious projects have recently been<br />

completed, <strong>and</strong> more are currently ongoing.<br />

Infr<strong>as</strong>tructure<br />

A huge ef<strong>for</strong>t is under way to rehabilitate<br />

Cabinda’s b<strong>as</strong>ic transport infr<strong>as</strong>tructure. One<br />

of the first steps in this regard w<strong>as</strong> the completion<br />

<strong>and</strong> inauguration of Cabinda’s new international<br />

airport at the beginning of 2007. It is<br />

designed to h<strong>and</strong>le regional <strong>and</strong> international<br />

flights, <strong>and</strong> is Angola’s second most important<br />

airport after Lu<strong>and</strong>a. Authorities were careful,<br />

however, not to be overly ambitious: at<br />

this stage, the new airport’s installations can<br />

h<strong>and</strong>le an average of 300 p<strong>as</strong>sengers per hour,<br />

but expansion is possible if traffic incre<strong>as</strong>es <strong>as</strong><br />

expected over the next few years.<br />

The second large project is the maritime port,<br />

which is undergoing a significant overhaul:<br />

no less than 100 million USD have been allocated<br />

by the central governement <strong>for</strong> this<br />

t<strong>as</strong>k . This major project, once completed, will<br />

boost Cabinda’s capacity to h<strong>and</strong>le cargo <strong>and</strong><br />

serve the growing needs of the province, <strong>and</strong><br />

perhaps even more significantly, its hinterl<strong>and</strong><br />

in the two Congos, an area with a population<br />

of more than 8 million. The development of<br />

Cabinda’s port is there<strong>for</strong>e likely to have an<br />

important <strong>and</strong> positive impact on regional<br />

economic cooperation. Beyond the port <strong>and</strong><br />

the airport, Cabinda is of course also investing<br />

major resources in its road network.<br />

Now that peace h<strong>as</strong> returned to the province,<br />

free movement of people h<strong>as</strong> been restored<br />

<strong>and</strong> the road network is not only being rehabilitated<br />

but also exp<strong>and</strong>ed. International construction<br />

companies are likely to find a huge<br />

market in Cabinda in this regard, <strong>and</strong> the most<br />

exciting project of all, currently being considered,<br />

is the building of a m<strong>as</strong>sive bridge over<br />

the mighty Congo River, linking Cabinda<br />

with the rest of Angolan territory through the<br />

Democractic Republic of Congo. This billion<br />

dollar project <strong>and</strong> its potential meaning <strong>for</strong> international<br />

investors will be discussed in more<br />

detail in the next edition of Dialogues.<br />

Health, Education<br />

<strong>and</strong> Social Projects<br />

Across the province of Cabinda, new health<br />

centres, schools <strong>and</strong> social housing projects<br />

are appearing. In some c<strong>as</strong>es, projects are<br />

co-financed with partner countries such <strong>as</strong><br />

China, Cuba <strong>and</strong> Korea, or through public<br />

private partnerships (<strong>for</strong> example involving<br />

companies such <strong>as</strong> Chevron, Songangol <strong>and</strong><br />

Daewoo). Cabinda’s two main hospitals were<br />

renovated <strong>and</strong> exp<strong>and</strong>ed in 2007, <strong>and</strong> 3 br<strong>and</strong><br />

new health centres were also completed in<br />

Povo Gr<strong>and</strong>e, Necuto <strong>and</strong> Dinge.<br />

Similar ef<strong>for</strong>ts are seen in the field of education,<br />

with br<strong>and</strong> new primary <strong>and</strong> secondary<br />

schools having opened in T<strong>and</strong>o Zinze <strong>and</strong><br />

Buco Zau, <strong>and</strong> another 500-pupil high school<br />

in Chiweca. Given the good progress made<br />

in the field of education, plans are underway<br />

<strong>for</strong> a university campus in the province. The<br />

completion of this project is certain to have a<br />

very positive impact <strong>for</strong> investors who will be<br />

able to tap into a pool of skilled <strong>and</strong> qualified<br />

local talent.<br />

L<strong>as</strong>tly, housing infr<strong>as</strong>tructure <strong>and</strong> the general<br />

improvement of living conditions is also a major<br />

target <strong>for</strong> capital investment. In Cabinda<br />

city, <strong>for</strong> example, one single project of 250<br />

houses w<strong>as</strong> completed during l<strong>as</strong>t year, <strong>and</strong><br />

across the province improvements are being<br />

brought to sewage systems, water distribution<br />

<strong>and</strong> electrification.<br />

The way <strong>for</strong>ward<br />

While oil h<strong>as</strong> been a blessing <strong>for</strong> Cabinda, the<br />

province’s decision makers are aware of the<br />

fact that long-term sustainable development<br />

will only be ensured through a diversification<br />

of the economy. Keeping this in mind, the<br />

authorities are keen to develop opportunities<br />

in new sectors of the economy, especially<br />

agriculture <strong>and</strong> agro-business, fishing, <strong>for</strong>estry,<br />

commerce <strong>and</strong> tourism. In addition to these<br />

sectors, public works <strong>and</strong> the infr<strong>as</strong>tructural<br />

development of the province will of course<br />

remain a priority <strong>for</strong> many years to come.<br />

Investment opportunities abound in all of these<br />

sectors <strong>and</strong> given the authorities’commitment<br />

to development <strong>and</strong> excellent prospects <strong>for</strong><br />

double-digit economic growth, Cabinda is<br />

sure to attract much international interest <strong>for</strong><br />

many years to come.<br />

In the next issue of Dialogues, we will have<br />

a more detailed look at the exciting opportunities<br />

presented by all of these sectors. ■<br />

“Through its innovative <strong>as</strong>sistance programmes,<br />

the Province of Cabinda does not leave children<br />

outside the educational system.”<br />

– Governor Anibal Rocha<br />

12 - DIALOGUES - <strong>EMRC</strong><br />

Quarterly - Summer 2008 - 13


I nterview<br />

Dumilde Rangel<br />

Governor of the Province of Benguela /Angola<br />

Governor Rangel graduated from Agostinho Neto’s university in economics,<br />

accounting <strong>and</strong> finance. He w<strong>as</strong> the director of a commercial<br />

company exporting diamonds, oil <strong>and</strong> coffee until 1987, when he w<strong>as</strong><br />

appointed Minister of External Commerce, which later merged with<br />

the Ministry of <strong>Industry</strong>. In 1990 he w<strong>as</strong> appointed Governor of the<br />

Huíla province, <strong>and</strong> since 1996 he h<strong>as</strong> been Governor of Benguela.<br />

■ Dialogues: Mainly due to its rich p<strong>as</strong>t, the province of Benguela is<br />

one of the most promising regions in Angola. As Governor of the province,<br />

what are your priorities at the moment?<br />

Governor Rangel: The most important projects are the rehabilitation <strong>and</strong><br />

expansion of the Commercial Port of Lobito <strong>and</strong> the modernisation of the<br />

Benguela Railway. This 1300 Km railway crosses Africa from the West to<br />

the E<strong>as</strong>t co<strong>as</strong>t through the Republic of Zambia, Democratic Republic of<br />

Congo, Mozambique, Zimbabwe, Tanzania <strong>and</strong> South Africa. Its importance<br />

<strong>as</strong> an international railway is there<strong>for</strong>e proven, <strong>and</strong> we must modernize<br />

it in order to regain the commercial strength we used to have within<br />

the SADC region. The government is also working on the reconstruction<br />

of 1000 Km of roads from Lu<strong>and</strong>a-Lobito-Benguela-Huambo, <strong>as</strong> well <strong>as</strong><br />

stretches of the Benguela-Lubango <strong>and</strong> Benguela-Namibe roads.<br />

Benguela h<strong>as</strong> another program called PIIB (Programa Integrado de Infra-estructur<strong>as</strong><br />

de Benguela), which is due to l<strong>as</strong>t <strong>for</strong> 8 years. It involves<br />

mainly the modernisation of the water <strong>and</strong> power supplies, improving<br />

communications, b<strong>as</strong>ic sanitation/drainage, street pavements <strong>and</strong><br />

public gardens. The aim is to improve the overall “look” of the main<br />

cities within the Province: Benguela, Lobito, Baia Farta <strong>and</strong> Catumbela.<br />

As we are getting close to the general elections in Autumn 2008, my<br />

ef<strong>for</strong>ts <strong>as</strong> Governor are aimed at attracting potential investors to ensure<br />

the rehabilitation of those significant projects.<br />

■ Dialogues: Benguela is blessed with a significant hydro-electrical<br />

potential. How do you intend to develop this area?<br />

DR: Indeed, it is one of my concerns. I would like to highlight our<br />

electric facilities, the Catumbela river h<strong>as</strong> sufficient capacity to bear<br />

the construction of other hydro-electric plants. But besides electricity,<br />

Benguela h<strong>as</strong> the opportunity to develop the hot springs of Bolongueira<br />

<strong>for</strong> therapeutic treatments, there<strong>for</strong>e developing its tourism, which is<br />

essentially focused on the beaches like Praia Azul. Talking about that<br />

prominent sector, I initiated a project to restructure two national hunting<br />

parks, south of Dombe Gr<strong>and</strong>e <strong>and</strong> 100 km from Benguela city.<br />

In addition, projects to build six four-star hotels are under way, due to<br />

Angola’s organisation of the African Cup of Nations (CAN) championship<br />

of 2010. This should provide a major boost to the province’s<br />

image.<br />

■ Dialogues: Regarding agriculture projects, what partnerships<br />

would you like to promote within our <strong>EMRC</strong> network?<br />

DR: Besides relying on a significant fishing industry, Benguela is an<br />

area with very rich soils <strong>for</strong> agriculture <strong>and</strong> livestock farming. Banana<br />

is one of the strongest products, but there is also a great quantity of<br />

potato fields. We have developed a partnership with the American<br />

group Chiquita to farm 3000 hectares of banan<strong>as</strong>. Here, agriculture is<br />

developed on three levels. Firstly, at government level, <strong>and</strong> then on a<br />

local level, focused on families: the government helps group together<br />

100 to 200 farming families in order to maximize the productivity of<br />

the l<strong>and</strong> <strong>and</strong> make better use of irrigation. It also gives a bull to cover<br />

traditional cattle, <strong>and</strong> focuses on research in order to make improvements<br />

in terms of meat <strong>and</strong> milk production. The other level h<strong>as</strong> to do<br />

with the small investors that have farms of about 1000 hectares <strong>and</strong><br />

develop the production of cattle or horticultural projects. In another<br />

agricultural project, the government gives small inves- tors an<br />

amount of 25 cows <strong>and</strong> one bull to make improvements<br />

in their livestock. At the end of four<br />

years they have the obligation to<br />

return those animals to the government,<br />

which will be given to<br />

other investors <strong>and</strong> families.<br />

■ Dialogues: What you mentioned is part of the DAF Program,<br />

which started in March of l<strong>as</strong>t year, extends over five years <strong>and</strong> is<br />

worth 5,5 million USD. What are the future steps on the development<br />

of the program here in Benguela?<br />

DR: Our plan is to trans<strong>for</strong>m Benguela within the next 3-4 years. If we<br />

add the program that the Central Government is implementing in the<br />

field of power generation, this will allow the development of industries.<br />

Besides the Sonangol refinery <strong>and</strong> the four cement factories, we are focusing<br />

on the manufacturing of ceramics. Besides, in the growing food<br />

industry, fruit <strong>and</strong> wheat trans<strong>for</strong>mation is an important value-added<br />

activity. We intend to find partners in the fabrication of soft drinks <strong>as</strong><br />

well <strong>as</strong> fermented drinks. ■<br />

14 - DIALOGUES - <strong>EMRC</strong> Quarterly - Summer 2008 - 15


Financing Business Opportunities<br />

along the Value Chain<br />

7-9 December 2008 - Paris, France Africa<br />

Initiated <strong>and</strong> organised by:<br />

Africa <strong>as</strong> a Key Player<br />

<strong>EMRC</strong> Africa Finance & Investment<br />

Forum 2008 (AFIF) will cover the latest<br />

trends in Finance <strong>and</strong> Investment<br />

throughout Session 1the African Session continent. 2<br />

Enabling Capacity debates <strong>and</strong> one-on-one<br />

Regional<br />

Building<br />

Integration <strong>and</strong><br />

tailored business meetings, the <strong>for</strong>um<br />

Infr<strong>as</strong>tructures<br />

will provide an international plat<strong>for</strong>m<br />

<strong>for</strong> practical discussions <strong>and</strong> individual<br />

business solutions. AFIF 2008 will showc<strong>as</strong>e<br />

some of the best investment opportunities<br />

in the African continent.<br />

Session 3<br />

Science & Technology<br />

<strong>as</strong> a mean to attain<br />

the Millennium<br />

Development Goals<br />

The Project Incubator Award:<br />

Fuel <strong>for</strong> growth<br />

To encourage entrepreneurs to initiate<br />

“bankable” business proposals,<br />

<strong>EMRC</strong> recently Session created 3 the “Project<br />

Incubator Promoting Award” the private which will be bestowed<br />

on the best project, judged<br />

sector <strong>as</strong> a means<br />

to attain<br />

on economic<br />

the Millennium<br />

<strong>and</strong> social contributions.<br />

During Development the Gala Goals Evening of the AFIF<br />

2008, the Rabobank Foundation will<br />

offer a prize of 10.000 USD to the winner<br />

of the “Rabobank-<strong>EMRC</strong> Project<br />

Incubator Award”.<br />

Session 4<br />

Science & Technology<br />

<strong>for</strong> growth <strong>and</strong><br />

competitiveness<br />

FORUM<br />

2008<br />

Session 6 - Investment in Africa: Financing & Funding Opportunities along the Value Chain<br />

Finance<br />

Investment<br />

Who should attend <strong>EMRC</strong> Africa<br />

Finance <strong>and</strong> Investment Forum 2008?<br />

Those who want to participate in<br />

strengthening the financial markets in<br />

Africa <strong>and</strong> render Session its economy 5 vibrant<br />

<strong>and</strong> attractive: Building financial export<br />

Agri<br />

experts, investors,<br />

bankers, company directors,<br />

capacity Business<br />

entrepreneurs, FORUM management consultants,<br />

research 2008 institutions, central<br />

banks officials, national <strong>and</strong> regional<br />

development agencies, governments<br />

<strong>and</strong> international organisations.<br />

For detailed programmes & registration in<strong>for</strong>mation,<br />

contact: Ines B<strong>as</strong>tos<br />

ib@emrc.be | Tel: + 32 (0) 26 26 15 15 | Fax: +32 (0) 26 26 15 16 | www.emrc.be<br />

4th Senior Management<br />

Economic Mission Africa-Israel<br />

Tel-Aviv, 19-23 October 2008<br />

2008<br />

Israel<br />

The Fourth edition of the Senior<br />

Management Economic Mission<br />

Africa-Israel will once again unite public<br />

<strong>and</strong> private sector players from Africa<br />

<strong>and</strong> Israel, with the aim of promoting<br />

private sector development, training<br />

human resources, stimulating access to<br />

international markets <strong>and</strong> exp<strong>and</strong>ing<br />

partnership opportunities.<br />

African delegates that are selected<br />

to be part of this exclusive Economic<br />

Mission have a common interest in<br />

sectors such <strong>as</strong> agriculture, agroindustry,<br />

IT, construction <strong>and</strong> finance.<br />

They want to identify partners <strong>for</strong><br />

specific projects <strong>and</strong> share experiences<br />

<strong>and</strong> success stories with their Israeli<br />

counterparts.<br />

The five day Programme includes:<br />

• Business Meetings<br />

• Field Visits to: Kibbutz, Dairy farms,<br />

Greenhouses, Drip Irrigation <strong>and</strong><br />

Aquaculture Plants<br />

• Visit to the Holy Sites of Jerusalem<br />

<strong>and</strong> Bethlehem

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